Show HN: AI Frothiness Index. Daily reading of how stretched the AI boom is (frothiness.jagular.io)

Jag has launched the AI Frothiness Index, a daily metric that gauges the current state of the AI market on a scale from 0 to 100, using a range of free public data sources. The index, which categorizes readings into bands of Calm, Warm, Frothy, and Bubble, utilizes five key pillars: prices, borrowing, spending strain, speculation, and real demand. Notably, a reading of 50 indicates a normal state, while the peak of the dot-com era serves as a benchmark for 100. The index employs multiple indicators, including stock prices, borrowing patterns, and AI-related market speculation, to provide a nuanced view of market conditions. This tool holds significant implications for the AI and machine learning community, offering insights into market sentiment and expenditure patterns within the AI landscape. By factoring in real demand against speculation, the index aims to provide a more accurate picture of whether the current enthusiasm for AI technologies is justified or if it signals a bubble. The use of data from reputable sources such as the St. Louis Fed and Yahoo Finance, along with historical comparisons, enhances its credibility and utility for investors, developers, and policymakers monitoring the AI sector's trajectory.